Ethereum’s developers have been working to solve the Blockchain’s one major issue – Scalability.

Last month in September, the creator of Ethereum, Vitalik Buterin, published a post on Twitter announcing the technology behind Zcash could help “Mass-validate” around 500+ Transactions per second. That’s 30x Ethereum’s current capacity.

 

Current estimates say Ethereum processes roughly around 15-20 transactions per second because of a hard-coded limit in the computation per block according to a recent Coindesk article. At the moment, Ethereum isn’t sufficient enough to handle the all dApps (decentralized applications) with it’s million’s of users.

 

But this week, Vitalik Buterin presented another solution that he and other Ethereum researchers believe will scale the Ethereum Network to 17,000 transactions per second – putting it in competition with Visa’s transactional capacity. According to Visa, they currently process around 2,000 transactions per second with a peak-capacity of 56,000 transactions per second.

On October 5, 2018, Vitalik Buterin introduced this new scaling solution at an Ethereum conference in Paris that he and the co-creator of the Bitcoin Lighting Network, Joseph Poon, originally developed.

The idea behind this solution is to allow users to process transactions outside the main Ethereum network using a SNARK-based side-chain called Plasma; However, it hasn’t been tested yet, but Buterin says he is optimistic the new system will increase the efficiency and potential of the blockchain. Buterin said,

“The main advantage of this new development is that the amount of data to be downloaded will be reduced significantly.”

 

It’s also worth noting that with Ethereum’s looming scalability concerns, it’s biggest blockchain competitor, EOSio, has already peaked nearly 4,000 transactions per second by the time of this writing. The EOS blockchain also supports inter-chain communication, which means multiple blockchains could work in tandem as a single system to reach millions of transactions per second.

 

As mass-adoption of blockchain takes place over the coming months and years, scalability, or lack thereof, is going to become the ‘Make’ or ‘Break’ of a blockchain. 

 

Scalability = Success

To learn more about Ethereum’s Snark-based Scaling Solution, visit the original CCN article.

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Responses

  1. Zeus69

    Great write Paul, very interesting competition out there, i hope the whole crypto space grows with mass adoption from the billions that are too scared to even attempt in investing in this valuable space, poverty around the world could be seriously alleviated by this adoption as many countries currency are worthless.
    Thank you for the valuable article.
    Regards,
    Mark (Zeus69)

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    1. Paul L Post author

      I agree, Mark. I’m glad you found it useful. I tried to keep it short and to the point. I think it’s just a matter of time before Vitalik and the developers are able to successfully scale the Ethereum network. Time will tell though.
      Take care 🙂

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  2. CryptosDecrypted

    Interesting post Paul. While ETH is very slow at the moment, the devs are working on a range of solutions such as Casper and a (delayed) shift to PoS. It seems likely they will eventually succeed. Watch this space for the next two years!

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  3. Infosion

    Very interesting, thanks for the great sumup!
    I think this sounds promising for ETH, but it’s always easier to say something like this in theory than to show it. What we CAN say right now is that EOS can already do lots of transactions per second. ETH can only improve with “workarounds”. May be they are also fast and usable in the future, but they are still workarounds in my opinion… But nevertheless if it’s working than it will probably be used and succesfull

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